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(Boing Boing)   Bankrupt Toys Я Us execs to employees:"$16 million bonus Я Us, nothing Я you"   ( boingboing.net) divider line
    More: Asinine, Hospital, multi-million dollar bonuses, Emergency department, Myocardial infarction, basic business decisions, emergency room pricing, retention bonuses, new bonuses  
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982 clicks; posted to Business » on 07 Dec 2017 at 7:50 PM (10 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



36 Comments     (+0 »)
 
View Voting Results: Smartest and Funniest
 
2017-12-07 06:21:02 PM  
In its filings in favor of the bonuses, the company had argued the payments were necessary to get executives to perform at a high level during its bankruptcy.

Awwww the poor unmotivated executives!
 
2017-12-07 06:29:48 PM  
I swear my list of people to beat to death with a spiked dildo is getting longer and longer.
 
2017-12-07 06:32:48 PM  
If your company goes bankrupt, bonuses should be illegal until it's in the black.

Hell, even then I'm of the opinion that "limited liability" should mean that only the board of directors and the executives are jailed for life for the corporation's misconduct, not their friends and families also.
 
2017-12-07 06:34:38 PM  
Golly gee, I wonder how they could possibly be bankrupt?
 
2017-12-07 06:45:07 PM  
I don't want to grow up, I'm an ex-ec-u-tive,
We get the best but you get less, you'll really flip your lid.
From golf to perks to corporate jets. It's the biggest waste of cash there is.
I don't wanna grow up, cause maybe if I did. I couldn't be a dick-sucking asshole with no strategic ability or vision whose terrible leadership just put thousands of hard-working people out of business for short-term gains.
 
2017-12-07 06:45:26 PM  

bdub77: I swear my list of people to beat to death with a spiked dildo is getting longer and longer.


So is your dildo.
 
2017-12-07 07:19:23 PM  
img.fark.netView Full Size


They ran out of Beebos again.
 
2017-12-07 07:56:29 PM  

WickerNipple: In its filings in favor of the bonuses, the company had argued the payments were necessary to get executives to perform at a high level during its bankruptcy.

Awwww the poor unmotivated executives!


They are going to into liquidation, they need a few people to stay.
 
2017-12-07 07:58:30 PM  
How else are they going to retain the top executive talent needed to finish running them into the ground?
 
2017-12-07 08:00:24 PM  
I'm not shocked.  Has anybody been in a Toys R Us lately?  A lot of them are run down and have awful floor plans.  A lot of the stuff they sell is junk and they never seemed to get over the '90s toy boom because they still have 'collectibles' all over the place that are basically bargain bin.

Hopefully in their place will come a real toy retailer that can pick up the baton.  But as it stands, TRU really did screw the pooch.  It was a very different place in the '90s, and now it's just be in death throes for quite, quite a while.
 
2017-12-07 08:04:58 PM  

Guntram Shatterhand: I'm not shocked.  Has anybody been in a Toys R Us lately?  A lot of them are run down and have awful floor plans.  A lot of the stuff they sell is junk and they never seemed to get over the '90s toy boom because they still have 'collectibles' all over the place that are basically bargain bin.

Hopefully in their place will come a real toy retailer that can pick up the baton.  But as it stands, TRU really did screw the pooch.  It was a very different place in the '90s, and now it's just be in death throes for quite, quite a while.


They used to have some good sales. The last few years they would have a buy one get one free fisher price sale. It was always a good way to pick up some of the superhero imaginext stuff for my kids. Other than that yeah, not much use for them.
 
2017-12-07 08:07:09 PM  
Copycat. Sears Canada did that
 
2017-12-07 08:09:04 PM  
I've said it on here before. Bonuses for CEO and boards of director types should only be allowed to be paid out of what is left AFTER federal taxes have been paid. You don't make a profit and paid no taxes?  Well to bad, you get nothing. Play funny accounting to not pay federal taxes? Well to bad, you get nothing.You want to hide behind shell companies and they don't pay taxes (the CEOs and Partners are in a separate LLC) well to bad, you don't get a bonus.
 
2017-12-07 08:27:23 PM  
No bonuses for the execs that ran the company into the ground.
 
2017-12-07 08:32:09 PM  
What a Toys Я Us exec might look like:

img.fark.netView Full Size
 
2017-12-07 08:55:38 PM  
Yes they are way overpaid. However, finding someone to go through the legal wranglings of a bankruptcy with the knowledge and what not that you need, isn't cheap.

/accountant
//they are still overpaid
///something something third slashie
 
2017-12-07 08:56:26 PM  

doglover: If your company goes bankrupt, bonuses should be illegal until it's in the black.

Hell, even then I'm of the opinion that "limited liability" should mean that only the board of directors and the executives are jailed for life for the corporation's misconduct, not their friends and families also.


Sure, but I'm pretty sure they didn't want it in the black.

If I recall, the company was purchased with the intention of milking every last cent out of it, then looting the coffers and jumping ship at the right moment.

https://en.wikipedia.org/wiki/Vulture​_​capitalist

I don't like the use of "vulture" in this context because it's an insult to vultures.  Vultures are noble and useful creatures that are vital to every ecosystem they inhabit.  No, seriously, they are.  They digest corpses that would otherwise lie around and rot for a hell of a lot longer. They can digest the bacteria harmful to humans and other species within their stomachs.  Thank a friendly neighborhood vulture today.  Just don't get too close; they might vomit to warn you off.

The people who do this s**t to companies are looters whose only purpose is to smash 'n' grab for their own benefit.  I'm not sure an epithet exists to properly express my loathing of them.
 
kab
2017-12-07 09:01:03 PM  
We've been through this already.   Leadership has been tasked with not managing the company effectively, and that's hard work.  So hard, it absolutely warrants paying them the salary of close to 400 typical employees in the form of a bonus.

Otherwise, they might leave, and then who's going to skillfully continue steering the company towards bankruptcy?     You, subby?

Don't be ridiculous.   Be thankful they didn't ask for 20 million.
 
kab
2017-12-07 09:01:52 PM  

grimlock1972: No bonuses for the execs that ran the company into the ground.


Jeff Immelt frowns upon your shenanigans.
 
2017-12-07 09:20:14 PM  
Enjoyed the headline.., A++ would read again
 
2017-12-07 09:21:15 PM  
Executives who destroy iconic companies should be committing seppuku, not receiving bonuses, but there is no such thing as honor in the United States of Avarice.
 
2017-12-07 09:31:41 PM  
How often does this story have to be repeated before people realize how the deck is stacked against the working class?  Time for the revolution to begin.
 
2017-12-07 09:44:17 PM  

runwiz: How often does this story have to be repeated before people realize how the deck is stacked against the working class?  Time for the revolution to begin.


How would this revolution work, exactly?
 
2017-12-07 09:59:58 PM  
The bonuses are only paid out if Toys R Us hits certain earnings goals. In other words, if the company starts to turn around then the executives get paid. That's not really unheard of in the corporate world.

Furthermore, people don't seem to realize that Toys R Us hasn't posted a profit in 5 years. Meanwhile the CEO has only been there for less than two. So it's not like he drove the company into insolvency.
 
2017-12-07 10:08:41 PM  

lexnaturalis: The bonuses are only paid out if Toys R Us hits certain earnings goals. In other words, if the company starts to turn around then the executives get paid. That's not really unheard of in the corporate world.

Furthermore, people don't seem to realize that Toys R Us hasn't posted a profit in 5 years. Meanwhile the CEO has only been there for less than two. So it's not like he drove the company into insolvency.


Venture capitalists loaded the company up with debt.  They would be profitable if for not the debt payments. Bankruptcy should discharge a lot of that bad debt.

img.fark.netView Full Size
 
2017-12-07 10:49:16 PM  

TedCruz'sCrazyDad: Venture capitalists loaded the company up with debt.  They would be profitable if for not the debt payments. Bankruptcy should discharge a lot of that bad debt.


That might be true, but it has nothing to do with the current management, especially because the company went private in a decade before the current CEO was brought in.

However, I'm not sure that the current owners are vulture capitalists in the classic sense because their goal was to bring Toys "R" Us public. In fact that's why the current CEO was brought in. He successfully led Dominoes to their IPO and the hope was that he'd do the same for Toys "R" Us. The classic vulture capitalist comes in and strips everything for parts and then sells it off. That's the opposite of what happened here.

Additionally, the current equity owners are going to get wiped out in the bankruptcy and they've already written down the value of their interest to zero. They're taking huge losses.

What's interesting is one of the three buyers did want to essentially strip it for parts. Vornado wanted to profit off the real estate holdings of Toys "R" Us, but Bain & KKR wanted to operated the company for growth and profit. Obviously all three failed, but the goal of two of the three was never to strip the company down.
 
2017-12-07 11:11:16 PM  

lexnaturalis: TedCruz'sCrazyDad: Venture capitalists loaded the company up with debt.  They would be profitable if for not the debt payments. Bankruptcy should discharge a lot of that bad debt.

That might be true, but it has nothing to do with the current management, especially because the company went private in a decade before the current CEO was brought in.

However, I'm not sure that the current owners are vulture capitalists in the classic sense because their goal was to bring Toys "R" Us public. In fact that's why the current CEO was brought in. He successfully led Dominoes to their IPO and the hope was that he'd do the same for Toys "R" Us. The classic vulture capitalist comes in and strips everything for parts and then sells it off. That's the opposite of what happened here.

Additionally, the current equity owners are going to get wiped out in the bankruptcy and they've already written down the value of their interest to zero. They're taking huge losses.

What's interesting is one of the three buyers did want to essentially strip it for parts. Vornado wanted to profit off the real estate holdings of Toys "R" Us, but Bain & KKR wanted to operated the company for growth and profit. Obviously all three failed, but the goal of two of the three was never to strip the company down.


Given the challenges the brick and mortar retail industry is experiencing, you could argue that doing anything to add debt to a company is going to doom it......
 
2017-12-07 11:35:49 PM  

AsparagusFTW: Yes they are way overpaid. However, finding someone to go through the legal wranglings of a bankruptcy with the knowledge and what not that you need, isn't cheap.

/accountant
//they are still overpaid
///something something third slashie


Especially since the current CEO has only been there a whole two years and is not responsible for the train wreck.

/but boing boing likes to gloss over facts that contradict their narrative.
 
2017-12-07 11:54:23 PM  
"At Will" employment is for suckers.
 
2017-12-07 11:57:05 PM  
Toys R Us is no Sears.
 
2017-12-08 02:52:33 AM  

PleaseHamletDon'tHurtEm: I don't like the use of "vulture" in this context because it's an insult to vultures.  Vultures are noble and useful creatures that are vital to every ecosystem they inhabit.  No, seriously, they are.  They digest corpses that would otherwise lie around and rot for a hell of a lot longer. They can digest the bacteria harmful to humans and other species within their stomachs.  Thank a friendly neighborhood vulture today.  Just don't get too close; they might vomit to warn you off.

The people who do this s**t to companies are looters whose only purpose is to smash 'n' grab for their own benefit.  I'm not sure an epithet exists to properly express my loathing of them.


Guinea worm?
 
2017-12-08 05:32:10 AM  

runwiz: How often does this story have to be repeated before people realize how the deck is stacked against the working class?  Time for the revolution to begin.


Any day now, any day...
 
2017-12-08 06:43:26 AM  

Gordon Bennett: PleaseHamletDon'tHurtEm: I don't like the use of "vulture" in this context because it's an insult to vultures.  Vultures are noble and useful creatures that are vital to every ecosystem they inhabit.  No, seriously, they are.  They digest corpses that would otherwise lie around and rot for a hell of a lot longer. They can digest the bacteria harmful to humans and other species within their stomachs.  Thank a friendly neighborhood vulture today.  Just don't get too close; they might vomit to warn you off.

The people who do this s**t to companies are looters whose only purpose is to smash 'n' grab for their own benefit.  I'm not sure an epithet exists to properly express my loathing of them.

Guinea worm?


I'll take it.
 
2017-12-08 07:26:29 AM  

bdub77: I don't want to grow up, I'm an ex-ec-u-tive,
We get the best but you get less, you'll really flip your lid.
From golf to perks to corporate jets. It's the biggest waste of cash there is.
I don't wanna grow up, cause maybe if I did. I couldn't be a dick-sucking asshole with no strategic ability or vision whose terrible leadership just put thousands of hard-working people out of business for short-term gains.


Catchy
 
2017-12-08 09:49:55 AM  
Where did Children's Palace go, anyway?
 
2017-12-08 01:02:50 PM  
I feel like I've missed my calling in life that I haven't been employed to run a multi-million dollar company into the ground.
 
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